According to findings published by a market research and advisory firm, ABI Research, revenues pulled in via blockchain technology around the would likely hit $10 billion before the end of 2023. ABI Research has found that there is still a lot of investment into the sector especially from many venture capital (VC) endeavours.

The company believes that VC efforts in general, are quickly playing roles which used to be played by Initial Coin Offerings (ICOs) before they all seemed to fade away. Last year alone, more than $3 billion was raised from over 600 funding rounds in the sector. This is a $2.25 billion increase from 2018’s funding which totaled 153 rounds at $850 million. Going the VC route was necessitated by impediments which stemmed from regulatory bottlenecks surrounding ICOs. According to the Michela Menting, the firm’s Blockchain and Digital Security Research Director:

“Tighter regulation (including securities) and taxation (as foreign currency, income, financial asset, etc.) on cryptocurrencies in a number of countries are prompting investors to look beyond ICOs towards more stable VC-based investment for blockchain startups focusing on support infrastructure, retail, supply chain and enterprise applications.”

There is still some setback to the current growth of blockchain applications which ABI believes will be resolved. At the moment, many startups still do not have reasonable access to blockchain offerings which will allow proper use of Blockchain-as-a-Service (Baas) with the startups’ applications.  Even though this is a problem, ABI Research believes that as from 2012, there will be several platforms and solutions that will tackle this and considerably support development, as well as interoperability. Blockchain technology is still being used even by traditional firms to boost revenue and improve on their core business function.

Image Credits: Pexels

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